WASHINGTON (Legal Newsline) - The Securities and Exchange Commission announced Friday that it has settled a complaint alleging that Joseph McVicker engaged in insider trading of Art Technology Group stock.
The alleged insider trading occurred before a Nov. 2, 2010, announcement that Oracle Corporation would acquire the company. McVicker, a Massachusetts resident, will pay double the amount he earned by purchasing several thousand shares of Art Technology Group stock before the announcement.
The SEC complaint alleges that on October30, 2010, McVicker learned that Oracle had agreed to acquire Art Technology for $6 per share. McVicker acquired this material and nonpublic information from a long-time friend, the SEC says. The friend's spouse was employed by Art Technology, the SEC says.
The SEC also claims that McVicker knew that the information was material, nonpublic and that it should not be used for trading purposes.
However, according to the SEC, McVicker used the information to purchase 24,400 shares of Art Technology on Nov. 1, 2010. Art Technology announced Nov. 2, 2010 that Oracle had agreed to acquire it. Art Technology's stock closed that day at $5.95 per share, a 45 percent increase from the previous trading day's closing price.
This resulted, according to the SEC, with McVicker "earning an ill-gotten gain of $44,268."
McVicker consented to the entry of a final judgment, without admitting or denying the allegations in the complaint. The judgment enjoins him from future violations, and he agreed to pay disgorgement of $44,268, prejudgment interest of $365, and a civil penalty of $44,268.